NR 533 WEEK 5 ASSIGNMENT BREAK-EVEN
ANALYSIS COMPREHENSIVE SCRIPT 2026
QUESTIONS AND ANSWERS GUARANTEED TO
PASS
◉ When constructing a CVP graph, the vertical axis represents:
Answer: dollars
◉ After reaching the break-even point, a company's net operating
income will increase by the ________, __________ per unit for each
additional unit sold Answer: contribution margin
◉ Pete's Putters sells each putter for $125. The variable cost is $60
per putter and fixed costs total $400,000. Based on this information:
Answer: The sale of 12,000 putters results in net operating incomeof
$380,000. 12,000 unitsx$65contribution margin=$780,000-
$400,000=$380,000
The contribution margin per putter is $65. $125-$60=$65.
◉ Net operating income can be calculated as: Answer: (unit sales-
unit sales to break even)xunit contribution margin
, ◉ Company A has sales of $500,000, variable costs of $350,000, and
fixed costs of $150,000. Company A has: Answer: Reached the break-
even point
Has a contribution margin equal to fixed costs
◉ Profit=(selling price per unit x quantity sold)-(________ expense per
unit x quantity sold) - ______ expenses. Answer: Profit=(selling price
per unit x quantity sold)-(variable expense per unit x quantity sold)
- fixed expenses.
◉ CVP analysis focuses on how profits are affected by: Answer: Mix
of products sold
unit variable cost
selling price
total fixed costs
sales volume
◉ The contribution margin equals sales minus: Answer: all variable
costs
◉ A company has a target profit of $204,000. The company's fixed
costs are $305,000. The contribution margin per unit is $40. What is
the break-even point in unit sales? Answer: 7,625 units
breakeven point= $305,000/$40=7,625
ANALYSIS COMPREHENSIVE SCRIPT 2026
QUESTIONS AND ANSWERS GUARANTEED TO
PASS
◉ When constructing a CVP graph, the vertical axis represents:
Answer: dollars
◉ After reaching the break-even point, a company's net operating
income will increase by the ________, __________ per unit for each
additional unit sold Answer: contribution margin
◉ Pete's Putters sells each putter for $125. The variable cost is $60
per putter and fixed costs total $400,000. Based on this information:
Answer: The sale of 12,000 putters results in net operating incomeof
$380,000. 12,000 unitsx$65contribution margin=$780,000-
$400,000=$380,000
The contribution margin per putter is $65. $125-$60=$65.
◉ Net operating income can be calculated as: Answer: (unit sales-
unit sales to break even)xunit contribution margin
, ◉ Company A has sales of $500,000, variable costs of $350,000, and
fixed costs of $150,000. Company A has: Answer: Reached the break-
even point
Has a contribution margin equal to fixed costs
◉ Profit=(selling price per unit x quantity sold)-(________ expense per
unit x quantity sold) - ______ expenses. Answer: Profit=(selling price
per unit x quantity sold)-(variable expense per unit x quantity sold)
- fixed expenses.
◉ CVP analysis focuses on how profits are affected by: Answer: Mix
of products sold
unit variable cost
selling price
total fixed costs
sales volume
◉ The contribution margin equals sales minus: Answer: all variable
costs
◉ A company has a target profit of $204,000. The company's fixed
costs are $305,000. The contribution margin per unit is $40. What is
the break-even point in unit sales? Answer: 7,625 units
breakeven point= $305,000/$40=7,625
